2006-12-02 16:52:52 · 5 answers · asked by Pmi 1 in Business & Finance ➔ Taxes ➔ United States
The state tax you pay is deductible on your federal tax return as an itemized deduction.
If you itemized you deductions on your 2005 federal tax return then any refund of state taxes from your 2005 state return that you received in 2006 will be taxable. This is true unless you were paying alternative minimum tax on your 2005 federal tax return. If you paid AMT in 2005 some or all of the state refund will not be taxed because you would not have received a tax benefit on your federal return.
If you took the standard deduction on your 2005 federal return the state refund will not be taxable in 2006.
2006-12-02 21:11:49 · answer #1 · answered by waggy_33 6 · 0⤊ 0⤋
State income tax is deductible as an itemized deduction.
If your state has no income tax, you can elect to deduct sales tax.
If you get a state tax refund for a year in which you deducted state taxes, you may have to include some or all of the state tax refund in federal income.
2006-12-02 18:39:35 · answer #2 · answered by mattapan26 7 · 1⤊ 0⤋
although your question does not make any sense, federal and state taxes are totally separate. they are different and each have their own tax laws.
state taxes can be deducted on your federal tax return (schedule A) as an itemized deduction. this includes state withholding from your salary.
2006-12-02 18:34:48 · answer #3 · answered by tma 6 · 0⤊ 0⤋
the federal government has no right to tax people. Only states do.
2006-12-02 16:55:54 · answer #4 · answered by rehcueguy 2 · 0⤊ 3⤋
yes
2006-12-02 16:54:59 · answer #5 · answered by Robert F 7 · 0⤊ 1⤋